Tensions with Turkey weigh on Greek real estate market

Tensions between Greece and Turkey over territorial disputes separating the neighbouring countries have weighed on the Greek luxury home market, despite strong growth in the broader property sector, says Berkshire Hathaway HomeServices.

In a report titled “Global Luxury Landscape”, Kyriakos Xidis, managing partner of Berkshire Hathaway Home Services Athens properties, said that foreign buyers are concerned about talk of Turkey launching military action against Greece as the assessment of relevant risk puts Greek properties at a disadvantage.

The war in Ukraine and the geopolitical uncertainty in southeast Europe, which intensified due to Turkey’s provocation and rhetoric against Greece, clearly had a negative impact on real estate demand in the spring and summer of 2022,” he said, adding however, that this has not affected all buyers looking at Greece.

Foreign investment

Foreign investors have been largely driving robust demand for Greek real estate recently, as property prices in the country remain well below levels seen in other markets, such as Spain, Italy and southern France.

Data from the Bank of Greece, the country’s central bank, shows that in the second quarter of the year capital inflows from abroad acquiring real estate reached 414.4 million euros, a 67 percent increase from the same period a year earlier, marking the best performance since the last quarter of 2019.

Greek island homes

The market in Greece is dominated by holiday home purchases, especially new construction luxury residencies in the Cyclades, Crete and Corfu and luxury apartments in Athens in the northern and southern suburbs known as the Athens Riviera, the report said.

“Additionally, demand is strong in the classic vacation destinations of Mykonos, Santorini, Porto Heli, Rhodes, Corfu and Crete,” it added.